Dara Khosrowshahi has been appointed the new CEO of Uber Technologies Inc. Khosrowshahi, who had been serving as the chief executive of travel company Expedia Inc till now, has been saddled with the challenge of leading the ride-services company out of a nearly year-long crisis.
The company sent an email to its employees regarding the appointment, which it has posted on its website. The email states that the new CEO would be joining the company on 30 August.
We are delighted to announce that Uber’s Board has voted unanimously to appoint Dara Khosrowshahi to be our new CEO... We are confident that Dara is the best person to lead Uber into the future building world-class products, transforming cities, and adding value to the lives of drivers and riders around the world while continuously improving our culture and making Uber the best place to work.
Khosrowshahi’s Mail to Expedia Staff
According to a report on tech website Recode, Khosrowshahi has also sent a memo to the employees at Expedia where he confirms joining Uber. The memo reportedly states:
This has been one of the toughest decisions of my life... I have to tell you I am scared. I’ve been here at Expedia for so long that I’ve forgotten what life is like outside this place. But the times of greatest learning for me have been when I’ve been through big changes, or taken on new roles...
The report also states that Uber's previous CEO Travis Kalanick – who was ousted in June amid growing concerns over his behaviour and the behavior of senior managers under him – has also welcomed Khosrowshahi in his new job, as he called him an "inspiring leader".
On 27 August, two sources with knowledge of the matter, had stated that Uber had chosen Khosrowshahi as its new CEO.
Khosrowshahi, 48, will take on the daunting task of mending Uber's image, repairing frayed relations among investors, rebuilding employee morale and creating a profitable business after seven years of losses. He would also have to contend with the legacy of Travis Kalanick, Uber's pugnacious co-founder.
Khosrowshahi was not known to the public to be among the top candidates for the job. He beat out Jeff Immelt, chairman of General Electric Co and one of the finalists for the job, who said earlier on 27 August he was no longer in the running. Meg Whitman, chief executive of Hewlett Packard Enterprise, had also been a leading candidate.
Khosrowshahi, who ran Expedia for 12 years, would bring an end to a company culture built on founder control. Kalanick enjoyed sweeping authority on the board and nearly complete autonomy in running the company, a governance style that often wreaked havoc.
New CEO, Old Crisis
Uber has been embattled by allegations of sexual harassment, a lawsuit alleging trade-secrets theft, a federal criminal probe over use of software to evade city regulators, and allegations of executives mishandling the medical records of a victim who was raped by her Uber driver in India, among other controversies.
Despite the controversies, Uber is still a growing company. Last week, the company reported a 16 percent increase in ride bookings and 17 percent jump in net revenue for the second quarter over the previous period, and its losses shrank by 9 percent.
Among Khosrowshahi's first tasks at Uber would be filling a slew of executive vacancies, including those of chief financial officer, chief operating officer and general counsel. In the absence of top leadership, Uber has been run by a 13-person committee.
(With inputs from Reuters)
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